Motor Vehicle Dealer - Type of License - Salvage Pool VehiclesInformationHow to become a licensed Minnesota Dealer – Salvage Pool Vehicles Policies and Procedures
- Anyone engaged in the business of leasing, selling or arranging the sale of motor vehicle (new or used).
- Anyone who has leased or sold more than five vehicles, either wholesale or retail, in a twelve month period.
- Anyone in the business of selling used vehicle parts or processing and selling scrap metals acquired from vehicle.
- Anyone who conducts consignment sales or arranges sales or leases
Zoning
- Any type of dealership is considered a commercial operation. Consequently, dealerships are required to be in a commercial location.
- In agricultural and industrial areas, zoning officials may consider issuing special use permits for a commercial operation.
Commercial Building
A permanent, enclosed building that is on a permanent foundation, connected to local sewer and water facilities, or otherwise complying with local sanitary codes, adapted to commercial use and conforming to local government zoning requirements. This may include strip office malls or garages if a separate entrance and a separate address is maintained and the dealership is clearly identified as a separate business.
Do not file an application until the location meets all the necessary requirements listed on the checklist
- Failure to meet the requirements or any misstatement on the checklist will result in the denial of the dealer license
- Any applicant denied a dealer license must wait one year to reapply (Minnesota Statutes, chapter 168.27, subdivision 11
- Used license applicants are encouraged to submit photos of the commercial building, designated display lot, and exterior sign.
Note: Please be aware that while you may meet state requirements for dealer licensing, other city, county, state or federal regulations may govern your business (for example, you may need zoning approval or a city license in order to do business). Contact your local unit of government and/or the Minnesota Small Business Assistance Office at (651) 296-3871![]( "Call: (651) 296-3871") for more information.
A separate license is required if the dealer is selling in a city with less than 100,000 population, outside the seven-county metro area.
Salvage Pool Vehicle Dealer
- Store and display damaged or junked vehicles for sale as an agent or escrow agent of an insurance company
- Solicit and advertise the storage and display of damaged or junked vehicles for sale as an agent or escrow agent of an insurance company
- Sell junked vehicles to licensed used parts dealers only
Note: A used or new motor vehicle dealer may operate as a salvage pool but must be licensed as a used vehicle parts dealer to acquire a junked vehicle from a salvage pool, insurance company, or its agent. FeesDealer License Fees
Fees must accompany application.
Dealer License: $285
Note: Filing and E-Licensing charges are included in the above fee.
Surcharge for Statewide Electronic Licensing System
As of 2009, all dealer licenses have a temporary surcharge, used to defray the costs of building a statewide electronic licensing system. This surcharge is 10 percent of the licensing fee, subject to a $5 floor and a $150 ceiling. It applies to all initial and renewal license applications submitted by mail or in person, and will be collected for six years between July 1, 2009 and June 30, 2015.
- The initial license fee is subject to a $25 surcharge
- The renewal license fee is subject to a $15 surcharge
- For mopeds and trailers: The initial and renewal license fees are subject to a $5 surcharge.
Other Fees:
Liability Insurance: Insurance is required on all vehicles held for sale/resale. Minimum limits: $30,000 per person, $60,000 per accident, $10,000 property damage, $25, 000 per person/$50,000 per accident under and uninsured motorist liability protection, $20,000 medical and $20,000 non-medical personal injury protection.
- Surety Bond: $50,000
- Demo Plates: $85
- In-transit Plates: $15
**Liability Insurance is required if lease is for 120 days or more. Frequently Asked QuestionsHow can I order additional plates?
Mail a written request for plates to the DVS Dealer Unit. Include your signature, dealer number and the fee (see above). At this time, we can accommodate online plate orders only during your online renewal process.
- Demonstration Plates: Authorized for use by new and used dealers
- In-transit Plates: Authorized for use by new, used, wholesaler and lessor dealers
- Permits: Authorized for use by new, used and auctioneer dealers
How can I order more temporary permits?
I get an error message when renewing my dealer license online.Be sure you include the letters DLR in front of your entry. If you still have difficulties, call the DVS Dealer Unit at (651) 296-2977![]( "Call: (651) 296-2977") .
I've changed or added dealership locations, which forms do I need?
This list of forms:
For a name change, you will also need:
For a change in type of dealership, you will need:
- Dealer License Type Change & Dealer Change of Name/DBA Form (PS2414)
- Dealer Commercial Checklist (PS2410)
I have new bond or liability insurance, what do I need?
For new bond insurance: Mail the completed original document to the DVS Dealer Unit.
For new liability insurance: Fill out, sign and mail/fax the original document to the DVS Dealer Unit. Include your dealer number.
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